Applied Digital (NASDAQ:APLD) Shares Down 3.5% – What’s Next?

Applied Digital Corporation (NASDAQ:APLD) shares dropped 3.5% on Monday . The company traded as low as $36.10 and last traded at $37.77. Approximately 19,876,933 shares changed hands during mid-day trading, a decline of 21% from the average daily volume of 25,320,521 shares. The stock had previously closed at $39.16.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Lucid Cap Mkts upgraded shares of Applied Digital to a “strong-buy” rating in a research note on Wednesday, May 27th. Roth Mkm reiterated a “buy” rating and issued a $65.00 price objective on shares of Applied Digital in a research note on Thursday, April 23rd. B. Riley Financial reissued a “buy” rating and set a $66.00 price objective (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Northland Securities set a $82.00 target price on Applied Digital and gave the stock an “outperform” rating in a research report on Wednesday, June 17th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a research report on Friday, April 24th. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $70.56.

Applied Digital Stock Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The firm has a market capitalization of $10.79 billion, a PE ratio of -51.04 and a beta of 5.69. The company’s fifty day simple moving average is $41.44 and its 200 day simple moving average is $33.93.

Applied Digital (NASDAQ:APLD) last posted its earnings results on Wednesday, April 8th. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23). Applied Digital had a negative return on equity of 15.91% and a negative net margin of 52.84%.The business had revenue of $108.55 million during the quarter, compared to analysts’ expectations of $78.47 million. During the same quarter in the previous year, the business earned ($0.08) EPS. Applied Digital’s revenue for the quarter was up 139.3% on a year-over-year basis. As a group, equities research analysts expect that Applied Digital Corporation will post -0.68 EPS for the current fiscal year.

Insider Buying and Selling at Applied Digital

In other news, Director Douglas S. Miller sold 10,000 shares of the firm’s stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $34.98, for a total value of $349,800.00. Following the completion of the sale, the director directly owned 184,859 shares of the company’s stock, valued at approximately $6,466,367.82. This trade represents a 5.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the sale, the director directly owned 208,378 shares in the company, valued at $7,207,795.02. The trade was a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 35,000 shares of company stock worth $1,182,175. 9.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Institutional investors have recently bought and sold shares of the stock. Noble Wealth Management PBC bought a new stake in Applied Digital during the 4th quarter valued at approximately $25,000. Albion Financial Group UT purchased a new position in shares of Applied Digital during the 4th quarter worth approximately $25,000. Activest Wealth Management bought a new position in shares of Applied Digital in the 4th quarter worth approximately $25,000. Ameriflex Group Inc. bought a new position in shares of Applied Digital in the 4th quarter worth approximately $25,000. Finally, McMillan Office Inc. purchased a new position in shares of Applied Digital in the 4th quarter valued at approximately $25,000. 65.67% of the stock is owned by institutional investors.

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.